>> sean: where's the thug behavior coming from? which side? where's the evidence? where's the video? i don't see any thug behavior from our side. what are they talking about? >> sean: i think that's the point. this is a narrative. people don't pay attention to it. but if you are a cash conservative, you will be buoy cotted and they will shut you down and silence you. >> what a job you have, having to listen to this crap. all the time we have left. thanks. greta's next. see you tomorrow night. >> greta: tonight, the union fight is absolutely exploding. teamsters president jimmy hoffa predicting civil war will break out in michigan. >> it's about power. >> i view this as an opportunity to stand up for michigan's workers, to be pro-worker. >> this is just the first round of a battle that's going to divide this state. >> unions are not about jobs. unions are not about wages. >> we are going to have a civil

war in this state. [loud commotion]. >> and the fact of the matter is, the heritage study shows a quarter of the union members would stop paying dues if they could. >> it's not about jobs. it isn't about wages. it is want about benefits. those are the things that get all the attention. what is at stake is the democrat party having its money laundering operation blown to smithereens. >> it means less money, less power. >> we are going to pass something that will undo 100 years of labor relations. and there will be blood. there will be repercussions. >> get the [bleep] out of my face! >> you hurt a lady. >> hurt nobody. get out of my face!

>> back the [bleep] up. >> they need this power, right? they need it for their political influence to demand more concessions from employers. >> it is a road block, not a road block, it's an actual end to the unions' funding of the democratic party. >>,. >> greta: so is michigan heading for a civil war? and will there be blood? lieutenant governor brian kelley joins us. good evening. >> good evening. great to be with you. >> greta: nice to have you. the words, civil war and there will be blood. are these simply fighting words or is there going to be a declaration of war between the union members and the state government? >> it's really an inappropriate attitude to take, let the policy change. you think about all we have really done is say that employees, workers ought to have the choice, the option, to decide what types of

organizations they want to associate with and which they don't. as long as the unions are providing a value, a service that is valued by the employees, then they are going to get their dues. if not, they have to change in order to well represent and earn those dues. >> greta: so the only people that under your theory, the only people who will not be joining the unions are the one who is are dissatisfied with the union and don't think they are providing a service to the worker, to that particular worker, is that correct? >> that'ses what it comes down to. the opportunity is, before the unions, to go and make their case to to the employee, with a closed union shop like we have had in the past, employees -- it was a compulsory requirement in order to have their job, that they had to pay the union this. changes that to say that the union has to earn their business. the union los angeles to earn their dues. and that really is going to put both the employee in a position of having greater freedom and control over the organization

that represents them. but then also, tell make the union more responsive, i think stronger in the long term. >> greta: all right. now, governor snyder has made some mention of jobs. i wonder, have you made any projection -- have you spoken to economists, talked to business leaders, how many jobs you think will be added to michigan in one year, as a result of the right-to-work legislation? >> a lot of that will depenndot timing of the implementation, these laws take effect, as union contracts come up for renewal. and so, it's not likea it goes into effect overnight, so it will roll intoesque over the course of the next year or so, but when we look at our neighbor to the south, we see that the pipeline in the straight state -- in the state of indiana in jobs and job growth that has been very impressive. we looked at that very closely when we did our planning here in michigan as well and gaining the support for this -- this new law

or change in our law. also, about 25%, we figure of firms won't even put your state on the radar screen, without this law in place, and so, this will be opportunity long-term job growth for our state. >> greta: all right. now without a doubt, it's created hard feelings. labor unions are saying it's a civil war and the state government is saying it's going to be blood as a result of this. from this day forward, how do you begin to sort of bury the hatchet between the two parties so that while you really disagree on this legislation, that you can work together on other legislation and other areas to bring your state forward? how do you bury the hatchet? >> that is really important that we start right away. we have dealt with very controversial issues in the past. the state of michigan has gone through a process of balancing our budget and paying down debt. we have seen the fastest reduction of unemployment in the nation and revamped the tax

structure, a lot of controversial things. we have found a way to work together and be inclusive even throughout the difficult times. i think once we get space between the passage of the law and the future, you will find that those types of tempers will die down, they will certainly be those who hold on to that anger over time. but our part is to be very itself and work toward the future and these fights, you have the other side, not willing to -- to engage in those types of tactics, we are not going to get down to that level and threaten violence or certainly not going to engage in calling names in that back and forth. we are all about jobs and that's what we are going to focus on. >> greta: have you focused at all on the city of detroit, which is crashing right now, on and a lot of unemployment? have you worked with the in thees to come up with a solution what you are going to do about that city? >> we have. the very basic things we need in

the city of detroit. we started with with law and order on the ground. after more than 40 years of trying, we finally were able to establish a regional transit authority to move people from one place to another. a lot of folks don't have cars, but they need jobs and need to be able to get to the jobs. st making improvement in the city of detroit. there are a lot of very serious issues and that will be a major focus of the administration over the next year, as it has been this year. >> greta: thank you, sir. and michigan protest turning really ugly and really scary for some. pro-union protesters tearing down a tent with people inside the tent, with the tent belonging to the conservative group, americans for prosperity. the violence was caught on camera. [loud commotion]

>> get out of the tent. >> greta: two people who were in that tent are here. andy first, you. what was it like, being inside that tent? >> well, it was very scary. two men came in and ski masks, they had box cutters or knives. they started to cut the canvas straps that tethered the at the present time to the ground. they started to flip over the tables that had hot cougho it. it was scary. and i think a lot of people also felt very angry. they felt like their personal space had been invided and -- invaded and their right to have their voice heard was being trampled on. >> greta: for you, david, what was it like? >> good evening, greta. it was pretty intense. we had to post people out by the straps to keep them from undoing them to make the tent cave in. when the coffee urns were thrown over, we knew they were inside. we came back around.

and went into the tent. it was almost collapsed by then. i and about seven other men went in there, trying to get the people that were trapped in the back of the tent out. and we made two attempts to get in there. and we couldn't get any farther than halfway through the tent. this tent is large, 30 by 60 feet. they were standing on the tent from the outside. so you couldn't get through the interior of the tent and push those people off. we couldn't make it to the back to get out -- i am pretty sure there were some women trapped in the far back end of the tent. we evacuated because there was nothing you could do. and came to the outside. and by then, we had security that was on the tent and they had no choice but to cut in there and try to find people that had -- were laying down or injured or trapped. but we didn't know. you could see people moving

around underneath the canvas. and they eventually succeeded in getting them out of the back of the tent -- it was very intense. >> greta: andy, is there any way -- was the tent in any way marked so the people who stormed it knew who was in the tent or could this have been crowd control gone just hysterical and out of control? or were you targeted? >> we were absolutely targeted. it was very clear there was a banner on the tent that said americans for prosperity. there was a banner that said workplace freedom. they had been picking away at our tent, jeering, looking into it and jeering at us. attempting to loosen the canvas straps for some time, leading up to the actual moment of the tent collapse. so we absolutely were targeted. and because we were there, making our voice heard. you know, they rampled on the tent, but more importantly, they

trampled on our democratic right to have our voice heard as well and to stand in solidarity with our lawmakers. >> greta: thank you. >> thank you. >> greta: it is happening in michigan, wisconsin and indiana. unions losing power. is it a sign what have is to come? former senior adviser to ronald reagan, pat buchanan is here. >> good to see you. >> greta: unions start in the 30s, 40s, 50s. is the union different, have a different purpose? and are they becoming weaker. they are not only becoming weaker, they have been devastated in the last 40, 50 years, 1950, one-third of americans were in unions and almost all of them were in the private sector, uaw had a million workers and things like that. what has happened here, this is almost a mortal blow, i think, when this happens in michigan, for this reason that everybody that is -- that's a paying dues to the union and not a member is going to stop paying dues.

they are going to say, i will keep the money myself. union members themselves are going to say, go to the employer and say, keep me on the job if i resign from the union? they are going to do that and keep the money themselves. the threat is not to the workers, it is to the union hierarchet and union structure and the union money. i mean, workers are going to be as well or as bad off as workers in virginia, tennessee and texas and florida, all of which are right-to-work states. are those folks really in horrible shape? their unemployment rate is lower. >> greta: there are two types of unions. there is the private union and the public union. >> right. >> greta: and the public-sector union is so vastly different in one respect, you know, lawyers always have to worry about the conflict of interest. but there is something bizarre about a public-sector union, putting somebody in office and then negotiating with that somebody for the person's wages or benefits. >> right. >> greta: public service.

there is a horrible conflict of interest that i don't know how it correct t. i just know that it exists because, you know, you are negotiating with the person who put in office. >> exactly. right! they go raise money for this guy, they nominate him and then they elect him. he wins by a few poign points and they want to negotiate the contract, joe, you and i are buddies. let's talk it over. so have you an inherent conflict of interest. the public prb with the public unions, look, we are borrowing 40 cents out of every dollar we spend. mon of the public unions when i wrote by book, the federal government, the pay and benefits combined of the average federal worker were about twice what they are in the private sector. of course, they have far greater job security. here, taxpayers paying for their employees are making average twice as much as they are. you saw this -- this was behind the uprising, really in wisconsin. then you had it in indian a. it was in ojaio and in michigan?!

cadillac square. that's detroit, where the democratic candidates launched their campaigns. >> greta: wroont you agree that private-sector unions are much different in in terms of historically, needing protection and gathering together -- pooling resources. >> i'm a union guy. i am in aftra/sag. i pay dues and i don't have to. i was a journalist in 1962. the editor hired me and they said, you have to join the union in 60 months or you will be fired. the union said, have you to pay for a union strike in new york, or we will get you fired when i was writing editorials against the strike in new york. so this is the -- it is that kind of coercion, which is coming to an end, everywhere. you heard it right here. the folks in michigan said, we looked at indiana, they are gettingions, businesses are coming in there. that's why we did it.

they look south, where are the foreign companies coming? spartanburg, south carolina, bmwar plants, mercedes, tuscaloosa. volkswagen volkswagen, chattanooga, nissan plant. when foreign folks come into the country, they say, we don't want to deal with that stuff. let's go where we have good labor relations in the united states of america -- the wages are reasonable. >> greta: are the big companies, though, are they the one who is are union busting? if they are only going to go to those states and put some governors up against the wall, in order to compete -- >> sure. they are going to get the best deal. here's where i agree with the union guys. nafta, gatt, they are magna carta for transcontinental corporations to shut down the united states, where they have high wages and the high regulations and move it over to china, cut your wage rate by

80%, produce there, bring the products back into the united states and then the huge new profits you make, share those with your shareholders and the executives. and that's where i disagree this globalization, free trade. they have really been unfair. one place i agree with hoffa. he was with me in the 90s. they are bringing mexican trucks into the united states, driving them on american highways, mexican drivers into rounder-cut american teamsters. i think that's wrong. i think the teamsters -- >> greta: yeah, yeah. but the united states is fighting that, they are shifty. they were saying that they were trying to prevent the trucks from coming into the country not as a trade issue, but saying it was a safety issue. there are a lot of games that the u.s. played on that. >> we weren't playing games. i said, why can't you make american teamster who is make high wages, they can't compete with a teamster in mexico who makes a fifth of the salary, driving on american highways.

i think hoffa was right. but when they talk about a civil war and you see the battle out there, that's hurting the labor movement, far more than the guy was hurt by the overland right we have been showing hoar a lot on -- here a lot on fox. >> greta: thank you. >> okay. >> greta: allen west, having fiscal negotiations with president obama is silly. got that? silly. congressman west is here to tell you why he said that. and dangerous news out of north korea. we have video of their rocket launch. can the rockets now reach the united states? ambassador john bolton goes on the record. and santa claus is coming to town -- or capitol hill. why is santa paying congress a visit? this holiday, share everything.

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at any chase depositfriendly atm and checks right from your smartphone. get rid of prepaid problems. get chase liquid. >> greta: if members of congress thought they were taking a long holiday break, they better think again. house mairment leader, eric kantor, warning lawmakers they will stay in washington until a fiscal deal is reached. allen west is here. before we get to the idea of staying in washington, you have said that negotiating with president obama is, to quote you, silly. >> i think when you look at what just happened today, the federal reserve will go into what is using -- >> greta: printing money. a fancy way to say it --

>> to the tune of $45 million a month foritous buy up our own treasury stocks. the argument is about $85 billion per year. when you put it thatn that context and understand that revenues have increased in the united states of america by 10% and spending by the for the government has increased 16% and we have a federal government spending 25s% of our gross domestic product, this is not a revenue issue, this is a spending issue. i think what we need to do is come up with the right type of legislation to solve this thing, keep these tax rates where they are and then if we want to come back next year and do the right thing, as far as the comprehensive tax scprmpl really solving this and promoting economic growth and wealth expansion, let's do it. we have a mission to do and we can't go home until we take care of it. >> the going home business, i roasted speaker pelosi, and i posted on gretawire because

she said the holiday is for bonding with families and bonding is after you do the work. what kind of example do we set for the military, where we have sthem oversea, missing their holidays, you are sitting here -- i'm sorry -- i don't want mean -- but whining that you cant have your vacation? >> see, that's the thing -- that's a perspective. there are many times i have been away from my family. i have missed birthdays with my children, christmas, new year's, when you have a mission in the military, you are there seven days a week, 365 days out of the year, to make sure that you provide the -- the common defense and protect this nation from its enemies. we need to be focused on what we need to do right now, that is to come up with a solution for solving the spending problem we have in this country. not a revenue issue. that's why i say negotiating with the president is really not a smart thing to do because $250,000 -- you know, you want to raise taxes on those tax

rates? that's not going to solve the problem. it is really just taking a teaspoon of water out of the ocean. >> greta: there are two issues. the things that really rubs me the wrong way, i have been saying this for 18 months, everybody in washington -- from the president on down, everybody has known about the fiscal cliff. they had the super committee that was supposed to decide by november or december of last year. the super committee wasn't able to reach an agreement. so what did they do? stop. they didn't work the next month. there was nothing to stop the super committee or the president or leader pelosi, complaining about losing her vacation, nothing stopping anybody from doing the work. congress not only ding didn't do its work, but this august, went on vacation and campaigned, repaid the salaries for torch campaign to get the job back and then what happens now? there is whining because you can't spend the holidays with your family. i think of the families, worried about jobs. what kind of holiday are they going to have if the congress doesn't solve this?

>> you can see the same frustration in new jersey, for the people waiting for the recovery efforts from fema with the trailers sitting around. the house of representatives passed the legislation that will stave off the sequestration for a full year. we found budget cuts. that legislation is sitting on the senate's desk. -- >> greta: harry reid -- look, he's had a budget from the president and from the house special he possibility vetesos and sits on. it i suspect he will go home. >> that's a very frustrate ago. >> greta: you know what -- it's not frustrating, it's wrong! you do your work home. >> we have one constitutional duty tow bruce a budget. for 3 years, they have refused to do this. this is in violation of their constitutionally mandated duty and responsibility. this is not a hard thing to solve. i think we should stay until we get it resolved. i am more than ready to did that. >> greta: i don't know how they can not stay here -- especially when have you 18 months to do

it. thinking about the demands, so many americans are worried about jobs and everything. anyone who is whining about not going home, viposted that leader pelosi can skype her family. >> there are individuals that are whining. i think the most important thing is to stay here. look, the president's commissioned that he set forth, the simpson-bowles commission -- >> greta: do that one! >> absolutely. we have talked about that in the house. that's one of the things that we brought forward. we are coming up with the viable solutions, based on the real problem in wash d. washington, d.c., a pending problem, not a revenue problem. what ben bernanke let you know, this economy is not in a recovery situation. he is saying they are going to continue to do this until we gete unemployment less than 6.5%. >> greta: $45 billion a month. >> a month. what that will do for the inflationary process with gas and food and that will reflect the middle-income families. >> greta: we will see who cares

and who goes on vacation. >> i will be right here. >> greta: i know. i can trust you. congressman, thankuf. >> always a pleasure. >> greta: coming up, lawmakers object to something they just discovered in obamacare, but there is a twist. they are the very one who is voted for obamacare. wait until have you this one, it will have your head absolutely spinning. spinning. we have a representative here to americans are always ready to work hard for a better future. since ameriprise financial was founded back in 1894, they've been committed to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries. the strength of a global financial leader. the heart of a one-to-one relationship. together for your future. ♪

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irveltion this is weird. they voted for it but they don't like it. a tax on a medical device. but now, 17 democratic -- yes, democratic senators are urging a delay impel elementing this tax. but get this -- they voted for obamacare and the tax. we have a representative here. so what's the problem here? >> you know, it's very interesting because they voted for t. now they want to delay implementation. in their letter, they specifically say they want to keep jobs and they don't want to hurt the economy at this time. i think that's very interesting that they are making these acknowledgements at this 2.3% excise tax on medical devices -- and they talk about protecting the fact that right now, we are the world leaders in innovation in this area, when they vote the for the bill, they didn't thinks that was important. >> greta: senator franken, senator cole and john kerry and dick durbin, all of these influential members of the senate, the dmses and the

medical device people have lobbyists so they go to their favorite senators and they say to their favorite senator, we want a deal. we don't like the obamacare. the senator who is so wanted to equalize this and make this fair, they decide they want special treatment for for the medical devices, but they are happy to have taxes go up in other areas because some of the people whose medicare taxes are going up, they don't have the lobbyists. but these senators have been lobbied. >> if they really believe that letter that they wrote, we passed a bill that repealed this tax, in the house, it's on their doorstep. all they have to do is take up the bill. if these 17 senators voted for it -- i am guessing most of the republicans would -- >> greta: they have to get harry reid. i realize you kor sponsored that. i don't like that idea. i don't like the idea that the

bill is passed and the special interests are pouring all over washington to get a special deal. and the regular joe with a small business doesn't have a lobbyist to say, okay, we want that special deal on the obamacare. this is patently unfair, every american who is part of the medical device community. >> we just this this conversation in south dakota, because somebody who said -- you talk about closing loopholes and getting rid of exemptions, the people who will get rid of those, except the people with the most powerful lobbyists, they will get theirs and where do we end up? that's a real concern. that's why we need to -- when we approach tax reform, we need to look at a flatter, fairer rate and then have the discussion about which loopholes and exemptions really can justify being around. >> greta: it's sneaky. we tried to get the senators to appear and the democratic senators are asking for special treatment for their constituents or don't want to talk about it -- >> how strange. >> greta: isn't that odd? >> striking.

>> shocking. >> greta: shocking. but i don't know how -- i honestly don't know how they send this letter off, thinking we are want going to see it and thinking that, you know, here are the one who is promoted this program, promoted this tax and they want a special deal for their constit wens at the expense -- >> and they voted for it. >> and you know what the criticism is, it is going to hurt profits to -- profits to the tune of $30 billion that. $30 billion in profits, to corporations and why aren't more people squawking about this? >> they talked about wanting to keep jobs. i don't know where all of these concerns were when they voted for the bill and why they don't do something about it if they are that concerned about it. i will guess that this letter was timed for this period of time, right now because there is so much going on with the fiscal cliff and the negotiations that the letter can be sent and it wouldn't draw greta's attention. >> greta: does senator harry

reid have the authority to delay the imp levellation? >> no, this is something that they definitely have to ask the departments and agencies not to implement. >> greta: does this go to hhs? >> i am guessing. who is it addressed to? >> greta: harry reid. the fix is in for the medical device community, i am going to say it. they want a special deal. they have gone to the democratic senators and now suddenly, they want a special deal out of it -- it's appalling. >> we don't add up all the taxes that are coming. the more -- that's why we repealed it and the whole health care bill -- >> greta: one of the taxes is the estate tax, that's the poor farmer who wants to give his farm or ranch to his heirs. >> you know that's a personal story with me. >> greta: oh, yeah. indeed, it is. >> what this is going to do, if we allow this to expire to go to a $1 million and 55% rate, 70% our farms in south dakota will be hit -- >> greta: but you problem is, you don't have a lobbyist. >> but they have me.

we are going to keep working on it. >> greta: nice to see you. a very defiant north korea deploying a rocket launch with a brand-new video. that's straight ahead. and ambassador john bololololol i had enough of feeling embarrassed about my skin. [ designer ] enough of just covering up my moderate to severe plaque psoriasis. i decided enough is enough. ♪ [ spa lady ] i started enbrel. it's clinically proven to provide clearer skin. [ rv guy ] enbrel may not work for everyone -- and may not clear you completely,

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>> today, st. lucie slaws paid a visit to congress, with a stern warning. >> this is a busy time of year, but thankfully, my staff at the north pole are as concerned as i am about the state of so many children and families and what will happen to them due to the childish squabbling here in congress, if it doesn't end. pass the tax cut for 98% of american families now. avoid the terrible budget cuts that will harm so many children and their families across this nation. >> greta: a liberal group, catholics united, brought santa claus to washington.

will the visit convince congress to strike a deal? if not, what will convince them? back in 90 seconds.

>> from america's news headquarters, i'm ainsley earhardt. washington lawmakers are preparing to grill secretary of state hillary clinton on the benghazi attack. her testimony before the house foreign affairs committee is scheduled for december 20. a similar session with the corresponding senate committee is also in the works. the september 11 attack on the u.s. consulate killed four american, including ambassador chris stevens. a ban against loud tv commercials is going into effect on thursday, thanks to the so-called calm act. ads can no longer be played at higher volumes than the show you are watching. the tactic has been used for years. the sec adopted this a year ago,

but gave broadcasters a year ago. violations can be reported online at fcc.gov. i'm ains. back to "on the record" with greta van susteren. check out our web site, it's foxnews.com. video out of north korea, thumbing its nose at the world, a very defiant north korean government, releasing new images of the successful long-range rocket launch. we have the latest from tokyo. >> yes, here in east asia, clearly, it has bruised people, governments across the region here, south korea and japan, and in recent days, reportedly pressing for an increase in the u.n. security council sanctions to the level currently imposed on iran. we don't know if they will get there, but tension is on the u.n. right now. china has a veto power there. china's patience was taxed with this launch, the foreign ministry spokesman expressing

regret, which is a strong word from beijing. but it is unclear what measures china would accept as means of punishment of north korea. greta? >> greta: do you know why the window was extended for this launch and then they launched it? is there any explaining for that, yet? >> it could have been a measure by thome confuse and throw everything off the track. yesterday, local time, local media said that the rocket was being dismantled -- sorry, two days ago, saying it was dismantled from the launch pad, perhaps for repairs. a couple of hours later, it was put back and the launch took place, perhaps without south korean media and the government there watching, particularly closely, everyone expected it to be put back by a matter of days. >> greta: thank you. today, the u.n. security council condemning the rocket launch, saying it will urgently consider an appropriate response. now, exactly what would that be? former u.n. ambassador john bolton is here, trying to

contain the smirk. exactly what is this quick move? >> well, i think they will have a strong statement about how concerned they are and -- >> greta: and north korea is like, so what? >> they weren't deterred by the existing sanctions and with good reason. every step north korea takes closer to a true, deliverable nuclear weapons capability, the more they believe that the united states and other countries that are worried will come to try to negotiate with them. so it's not that they -- their successes breed stronger reaks against hathey are dorks they think the arrest -- the rest of the world will play into their hands and for 20 juries, they have been right. >> greta: the one country that congratulated them was iran. in april, north korea attempted to lauren this rocket and it failed. six months later, they are good. it's fair to be suspicious that iran helped them. now that they have the ability to do the long-range missile, what can they reach and what

point do they miniaturize a warhead and they are working with iran. it is not a good picture. >> they have been working with iran for 15 years. they both started with the same soviet-era scud missile and they both have the same objective. this has nothing do todo with launching or weather communications satellites, which what both north korea and iran are saying. >> greta: nbc report, i thought was interesting. the object that north korea sent into space appears to be, quote, tumbling out of control. so whatever they sent is tumbling out of control. when tell tumble -- >> it could be an inflated beach ball. we don't know what they put into orbit. the purpose is not to put something in orbit. it is to put it on target somewhere around the world. you know, you would have to look at the shape of the orbit to worry about where it might come down. the fact that they got something into -- bit at all is noteworthy. south korea, an incredibly

prosperous society has itself failed to orbit satelliteses. for this impoverished and the most heavily sanctioned regime on earth tells you about u.n. security council sanctions is like. >> i am sure the obama administration within days will be saying that we are going to get back seriously to the six-party talks to deal with this -- you know, we see in the mainstream media, people saying this is not a big deal, get ready for the next crisis -- it is a big deal. >> greta: i'll tell you why it is a big deal. very few american presidency get into north korea. we have been there three times. every day, the citizens are marching. they are convinced that every american, every day of the week is thinking of how it kill north korea. there is such an incredible disconnect. they are terrified and they are preparing to do something to us. >> they believe they can intimidate the united states. they have succeeded in that

before. and china had could bring enormous pressure on north korea, gets away with issuing statements about regret. look, if the chinese were enforcing the security council sanctions, it would be very hard if not impossible for north korea to make this progress. the nicheese -- the chinese are enabling the north koreans because it suits their interests to do so. >> they are convinced there is a war against us and they have won. they have a trophy there in the harbor. there are incredible stories that go on there. nice to see you, sir. >> thank you. >> greta: straight ahead, dpu lawyer what a rich actor is doing to

>> greta: president obama refusing to budge. if that happen, will america's top earners leave the country? sounds extreme? that's what's happening in france. the socialist government imposing a 75% tax on numbers higher than 1 million euros and stealth -- wealthy people are moving out of the country. good evening, sir. well, france, some people are fleeing to avoid the tax it's

not illegal. but sens a message. >> it certainly does. it shows you that when government tries to increase income through the obvious measure -- let's raise tax rates on the richest people, the richest people don't like that. france's evidence, anecdotal, you have the actor who is moving out to a belgian town that is now a colony for french exiles. he is fleeing that 75% tax. the former ceo of loriele and a ceo giant. and it used to be that retirees would leave, after their kids haveh grown up and left home. but now it's young, dynamic millionaires, leaving france, in their peak earnings period. there is even harder evidence of the impact when you try to soak the rich. it showed up this week in britain. >> greta: in what way? >> well, britain, one year ago,

basically, they had 16,000 filers who paid taxes on $1 million in income or higher. one year later, after they raised the rate from 40% to 50%, they had only 6 thousand. 16,000 it to6 ,000, a 60% reduction. they saw the lost tax revenue was $7 billion euros. so that is a key pound -- pounds in britain. that's a key loss. it shows how part of the people leaving the country. i don't think that millionaires are leaving america. we are americans. but you can do things to your income to look like you are not making a million dollars. >> greta: look at google, perfectly lawferl. they did tax avoidance and managed to do that in bermuda. they saved $2 billion. but this whole idea of tax -- you hear so much from the members of congress and the president, you know, going on for decades that woo need tax reform. then we hear stories like tonight, where 17 senator who is voted for obamacare are now

asking for specific tax relief in obamacare for a special interest, which happens to be medical devices. so i mean, the game goes on and on and on, this tax game. we never have a sense of, you know, trying to reform it and making it a good solution for our country. >> sure. yet the impact keeps happening. new jersey increased its rate and lost 25,000 residents by 2011 and $150 million in tax revenue. it gained some on the other side. maryland raised their top rate almost 10% n2008, they had 3,000 people who filed over $1 million and a year later, only 2 ,000, down 50%. the problem here is, if you just keep trying to soak the rich fwe tax american millionaires at 100%, have you enough money to run government for 74 days. and it filters down into everyone else. remember, california, the evidence in california, kind of missed, some people say it didn't leaded into a problem.

it didn't lead to a flight out. but they are paying 13.3% in california, on top of federal rates. people are going to leave that state. we hate taxes. we spend -- for every dollar government collects -- >> greta: i am going on take the last word -- >> i'm sorry, go ahead. >> greta: i am going to take the last word. the wealthy people have the wherewithol to figure out how to avoid the taxes, they are the one who is can move. >> thank you. >> greta: coming up, what really happen when is president obama and speaker house john boboboboo initiated.

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>> greta: high level fiscal talks what do they really say to each other? >> yesterday, obama said, quote, if we can get some leadership on the republican side, we can probably solve this in about a week, it's not that tough. boehner responded saying, quote, i've september the president our proposal. if he doesn't like our plan, he